EURUSD currency pair seems to suggests that Euro is likely heading for a sustained downtrend. Looking at the chart below MACD and stochastic is pointing downwards. Note that MACD is showing weekly data which suggests we're looking at a longer term downtrend. If would close all my longs and go short at this stage.
Below is the Daily chart of EURUSD, which shows more detailed short term trends. Note that it has broken through some of the resistance and both macd and stochastics are turning downward, hinting towards a downward rally. I would close all my long position if i have any and start to go short incrementally, ie adding to short position as and when the downward momentum continues. In terms of probability you're likely to make a gain going short than long on medium to long term trade on the EURUSD. You should be prepared to hold the trade from few days to even weeks or months. This is not for day trading, you can make consistent profit in currency trading if you work smart and focus you attention to follow you system like a robot. Keep the position size to a minimum as this is a probabilities game. Also place a stop so that you don't lose all your chips one one trade and at the same time keep it far apart so that you don't get stopped out by the daily fluctuation. I place my stops sometimes 200 pips from current price. I'm also willing to hold on the trade for weeks and months. Remember you can make most of your profit from a single trade if you stick with the trend. Happy trading.
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